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London property market blog


/ by In house team

Top areas in London for investment

Latest figures from the Land Registry show significant increases across most of the Capital, with annual price rises ranging from the bottom of the scale at 6.1% in the borough of Redbridge, to the top of the scale at 26.2% in the borough of Waltham Forest, both of which are situated side by side in North East London. Within the top performing boroughs are pockets which have seen remarkable activity and interest, each experiencing significant growth in prices as a result of high demand. We’ve analysed several of our branches which fall within these boroughs, to see why they are some of London’s most in demand locations.

Islington, N1

London Borough of Islington – annual price increase 18.7% (Source: Land Registry, April 2014)

James Marshall, Sales Manager at our Islington branch, comments: “Over the past few years, Islington has become one of the most popular areas in London, with property prices rising by as much as 20% in the last year. With its close proximity to the City, and excellent transport links, including Highbury and Islington overground and tube station and Holloway Road, Caledonian Road and Arsenal tube stations, Islington appeals to many buyers from different backgrounds including young professionals, overseas buyers and families. Redevelopment of the surrounding areas such as Kings Cross and the East, have attracted many investors, foreign buyers and cash buyers, which make up 20%, 15% and 25% of our registered buyers respectively. Families who traditionally were more inclined to look at areas in North London such as Hampstead,have since realised that they can get more for their money in N1 and its surroundings. Another area attracting plenty of attention is Stoke Newington, which is seeing an influx in demand among young professionals and couples as it offers buyers a good selection of properties at a slightly lesser budget than central Islington.”

Peckham, SE15

London Borough of Southwark - annual price increase 20.9% (Source: Land Registry, April 2014)

Jason Davis, Sales Manager at our Peckham branch, notes: “According to the latest Land Registry figures, the London Borough of Southwark, which encompasses Peckham, has seen an increase of 20.9% in property prices in the last year. Peckham continues to attract a good mix of young professionals and couples due to its excellent transport links to London Bridge, Canada Water, London Victoria and Clapham Junction, as well as being deemed an affordable suburb. Families also find the market here very attractive for its excellent schools and open spaces, like Peckham Rye Park. The growth of inner city villages such as Bellenden and Nunhead, have greatly increased the area’s popularity, with an assortment of independent shops and deli’s lining the streets. Within these trendy new village areas three bedroom family houses and two bedroom flats, typically bought by young professionals and couples, are in high demand. However, for investment purposes, fully modernised, one bedroom flats are achieving above asking price in most cases. We recently marketed a raised ground floor, one bedroom flat on Kings Grove for £325,000. The flat was on the market for one weekend and received eight offers, selling for 8% above asking price.”

Top areas in London for investment

Brixton, SW2

London Borough of Lambeth - annual price increase 23.8% (Source: Land Registry, April 2014)

Jimmy Carr, Sales Manager at out Clapham branch, says: “Located near traditionally sought after areas such as Clapham Common, Abbeville Road and Clapham High Street, Brixton’s reputation of offering relatively affordable properties has pushed it to the forefront for investment. In previous years, Brixton was considered less desirable and more gritty than other surrounding areas, but this perception has altered and there is now a definite feeling of uplift and change for the better that surrounds the area. Brixton offers a good selection of transport links via Brixton tube station on the Victorian Line and Brixton overground station, and a wide range of well-proportioned Victorian houses and newly built flats. The recent development of Brixton Square by Barratt Homes, has piqued the interest of many new investors from all walks of life. In addition, the very trendy Brixton food market has influenced the areas desirability, appealing to a younger, cooler demographic. In recent months, young professionals, with help from the bank of ‘Mum and Dad’, have become the primary buyers in the area, and it is quite common to see parents gifting their children with large cash deposits, so that they can get a foot on the ladder. Particularly popular amongst these buyers are two bedroom garden flats with prices starting at £550,000, while families tend to look for three bedroom split level Victorian houses starting from around £800,000.”

Kennington, SE11

London Borough of Lambeth - annual price increase 23.8% (Source: Land Registry, April 2014)

Justin Bhoday, Sales Manager at our Kennington branch, comments: “Kennington’s main appeal has for many years been its convenient access to a number of centrally located areas within the Capital, such as the West End, the City and Canary Wharf. The proposed Nine Elms redevelopment and Northern Line extension, which will run from Kennington to the Battersea Power Station, has already brought plenty of interest from young professionals and parents, with the area being considered a ‘hot spot’ for investment. Almost a quarter of investors are currently parents investing in two or three bedroom Victorian properties, which are usually priced at around £500,000, for children who already do or intend to study at one of the nearby teaching hospitals, such as St Thomas’, Guys or Kings College Hospitals. Parents are able to purchase in cash, preferring the good capital growth returns over those offered by banks.”

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In house team London Property Market

As the marketing and communications team at Kinleigh Folkard & Hayward's head office, our aim is to keep you updated and informed where the London property market is concerned. In addition, we'll bring you tips on navigating current issues and trends in the market when buying, selling, letting and renting to ensure that whatever field you're interested in, you'll be completely informed.

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